Lipper: American bond funds and tech equities attract decent inflows

03:05 22.09.2017

As Lipper data showed on Thursday, US-based taxable-bond funds managed to take in $7 billion for the last week, which is the greatest weekly intake since July. The outcome contributed to an already firm year for debt versus the backdrop of a rate-hiking cycle.

Well, even in a week with huge inflows for technology equities, American fund traders keep favoring debt over equity. On Wednesday, the Fed unveiled plans to cut its own bond holdings, thus marking a historic shift from the ultra-easy monetary policy it had been pursuing since the 2007-2009 global financial meltdown.

In 2017, taxable-bond mutual funds as well as exchange-traded funds have currently brought in almost $219 billion in America, as Thomson Reuters' Lipper research unit states.

Nevertheless, it’s not a bubble, as some financial experts say. Technology-driven disinflation, demographics and debt – all work to put pressure on long-term rates.